All the Gold ever extracted is 160,000 tons (in 2009) , The American Debt = 14 Trillion Dollars = 1.8 All the Gold ever extracted in Human History !!! The monetary mass in the US is increasing by 15% a year ! Total gold divided by people in the world gives each of us 23 grams

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Sunday, March 15, 2015

Gold - The Suppression of Physical Gold Price comes from an unforeseen factor

Gold - I mean it just does not add up. Mines are closing so less is
being produced and yet demand is sky high plus the physical price is not
becoming overly divorced from the paper price as most experts said it
would have to. So what is going on? There is a new supplier in town, and
he is very secretive.

Gold and silver typically rise together
with economic improvements in emerging markets and Europe when the U.S.
cannot cope with this pace.The euro has strong positive correlation to
gold, they often move together. This third factor is the most important
one, because it represents a “pre-indicator” for inflation, central bank
intervention in times of crises, real interest rates/financial
repression but also for the availability of easy money to push up
commodity prices. The growth difference between investment-driven growth
in Emerging Markets and often consumption-driven growth in the U.S may
lead to a “fear factor” incorporated in such “global imbalances”.

The
Fed fights this fear factor with easy money. Between 2009 and summer
2011 emerging markets continued their ascent but high oil prices and the
weak housing market hampered the United States. A similar situation
happened in the 1970s when Southern America and Europe showed far higher
growth than the U.S. because US monetary policy was too easy.

The
rise to 2011's record peak of $1,920 came as several of the Arab Spring
revolutions descended into civil war, Greece was brought to a
standstill by a general strike against the Eurozone's austerity demands,
and England suffered its worst rioting of modern times.

Priced
in sterling, gold's rise since 1968 has been 40pc greater than its rise
against the dollar. Over the past 10 years gold has gained 273pc for
British investors against 255pc for US buyers – and its strongest gains
came when the dollar was also rising.